Prices rose 2.3 percent in April compared to a year ago, according to the Department of Labor. Economists were predicting prices to rise by 2.4 percent.
April's reading is great news for grocery shoppers: it's the lowest price hike reading for US consumers since 2021.
The news sent US stock index futures higher on Tuesday, as investors increased expectations that the Federal Reserve was on track to lower borrowing costs this year.
Wall Street's moves are following a record-setting trading day. Minutes after the inflation report hit the wires, Dow futures were down 0.28 percent, S&P 500 futures rose 0.13 percent, and Nasdaq futures were up 0.33 percent.
'The introduction of sweeping new tariffs on imports into the US roiled markets in April,' Nicholas Hyett, an investment manager at Wealth Club, said.
